Current State of the Market - icmif
Current State of the Market - icmif
Current State of the Market - icmif
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Pooling Risk<br />
• Good examples already available<br />
– Latin American Reinsurance Group<br />
– Fire Facultative Facility<br />
10.00%<br />
Potential Cost Savings<br />
• Shared XL purchase<br />
– A High Layer Catastrophe Excess <strong>of</strong><br />
Loss<br />
– Joint purchase by 3 – 6 ICMIF members<br />
– Derive cost savings from<br />
Layer Rate on Line<br />
8.00%<br />
6.00%<br />
4.00%<br />
2.10%<br />
2.25%<br />
1.75%<br />
3.13%<br />
• Capital efficiencies from reduction in<br />
“redundant” top layer limits<br />
• Diversification within layer<br />
2.00%<br />
3.00%<br />
6.00%<br />
• Bulk purchasing power<br />
0.00%<br />
• An ICMIF Reinsurer or SPV?<br />
Company A<br />
Company B<br />
Company C<br />
Company D<br />
Potential Savings<br />
Shared Layer<br />
31
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